Additional resources

19.05.2016 - Minutes of the Fed supported the US dollar

Currency
trading and the euro. The price of euro continued to fall against the US dollar
after the publication of the previous Fed meeting minutes, which has led to an
increase in the probability of the Fed raising interest rates in June. Thus,
the majority of members of the US Federal Open Market Committee were in favor
of monetary tightening in the United States in case of further improving
macroeconomic data in the country. It is worth noting that earlier this week,
was published the data on the growth of consumer inflation by 0.4% in April,
and this dynamics is likely to continue, given the rise in oil prices. On the
other hand, the consumer price index in the euro area fell by 0.2% for the
year, which can lead to increased stimulus measures by the ECB. Today, the
dynamics of trading will affect the publication of the minutes of the previous
meeting of the ECB (11:30 GMT), as well as the speech of the deputy chairman of
the Fed Stanley Fischer (13:15 GMT). According to our forecasts, the euro will
continue to fall in the medium term.

Currency
trading and the British pound. The price of the British pound rose yesterday
after were published the results of voter survey on the UK’s exit from the EU.
Thus, 55% support the preservation of the country within the EU, against 37% in
favor of its exit. Also yesterday, was released the data on the country's labor
market, according to which the unemployment rate was 5.1% and the number of
unemployed decreased by 2.4 thousand, while the average wage index growth
accelerated to 2.1% vs. predicted 1.7%. Today, the dynamics of trading will
depend on the news on retail sales in the UK. According to our forecasts, the
British pound will rise after the referendum on 23 June but we do not exclude
the fall in the coming weeks.

Currency
trading and the Japanese yen. The price of the Japanese yen today continued its
decline against the strengthening of the US dollar due to increased probability
of the Fed raising interest rates in June, after yesterday's publication of the
previous Fed meeting minutes. At the same time, support for the yen was the
news about the increase in the volume of orders for engineering products in
Japan except the vessels and municipal equipment, by 5.5% against the expected
decline of 1.9%. In case of a fall on the stock markets, the demand for defensive
assets like the yen rise, but in the medium term, we expect the fall of the yen
against the dollar amid divergence of monetary policy of the Fed and the Bank
of Japan.

Currency
trading and the Australian dollar. The price of the Australian dollar showed a
decrease against the strengthening of the US dollar, as well as the publication
of statistics on the labor market in the country. Thus, the unemployment rate
was 5.7%, which is 0.1% better than expected, but employment increased by 10.8
million, against expected growth of 12.1 thousand. The strong influence of the
Australian currency in the near future will have a price of commodities that
can be reduced in the coming weeks. We maintain our medium-term negative
outlook, but in the near we future may see a slight correction.

Currency
trading and the New Zealand dollar. The price of the New Zealand dollar has
continued to fall and came close to local minima due to the strengthening of
the US dollar, as well as the weakening of the Australian dollar, which
traditionally has a strong impact on the New Zealand dollar. Low inflation in
the country may lead to a further reduction of the Reserve Bank of New Zealand
interest rates. In the near future we can see the price correction, but the
medium-term outlook remains negative.

PAMM accounts

Market Info

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RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange (‘Forex’), Contracts for Difference (‘CFDs’), Indices, Options, or other financial derivatives, on ‘margin’ carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any of these markets you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full ‘Risk Disclosure’ and ‘Risk Disclosures for Financial Instruments & Investment Services’

LEGAL: ‘fxfinpro.com’ is a domain owned and operated by ‘PFX Financial Professionals Limited’, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840, having its principal place of business at 82 Nikou and Despina Pattichi Avenue, Maritania Court, Office 101, Kato Polemedia, 3070 Limassol, Cyprus. ‘PFX Financial Professionals Limited’ is regulated as a Cyprus Investment Firm (‘CIF’) by the Cyprus Securities and Exchange Commission (‘CySEC’) under license number 193/13. ‘PFX Financial Professionals Limited’ operates in accordance with the Markets in Financial Instruments Directive (‘MiFID’) of the European UnionRESTRICTED REGIONS: PFX Financial Professionals Limited does not provide services to citizens of the USA, Canada, Japan, Belgium, North Korea, or Iran

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.